Callaway’s delinquent water bills top $539,000

Published: Sunday, August 10, 2014 at 08:56 PM.

CALLAWAY — City Commissioner Bob Pelletier will call for an audit of the city’s water system after discovering the city reported $539,309 in accounts receivable at the end of 2013.

It is one of several suggestions he is expected to make at Tuesday’s City Commission meeting designed to improve the city’s financial situation.

The audit would include looking at the process from reading meters to mailing bills. Angela Balent of Warren Averett would conduct the audit, charging $15,000 for 80 hours of work. Warren Averett is the firm the city uses for its regular audits.

One of Pelletier’s main concerns is the collection of delinquent utility accounts. The city reported $539,309 in accounts receivable at the end of 2013, including $156,992 for water and $325,431 in sewer, some of which date back to 2005. The commissioner suggests mandatorydeposit amounts for accounts delinquent after two months.

CALLAWAY — City Commissioner Bob Pelletier will call for an audit of the city’s water system after discovering the city reported $539,309 in accounts receivable at the end of 2013.

It is one of several suggestions he is expected to make at Tuesday’s City Commission meeting designed to improve the city’s financial situation.

The audit would include looking at the process from reading meters to mailing bills. Angela Balent of Warren Averett would conduct the audit, charging $15,000 for 80 hours of work. Warren Averett is the firm the city uses for its regular audits.

One of Pelletier’s main concerns is the collection of delinquent utility accounts. The city reported $539,309 in accounts receivable at the end of 2013, including $156,992 for water and $325,431 in sewer, some of which date back to 2005. The commissioner suggests mandatorydeposit amounts for accounts delinquent after two months.

“We cannot just stand by and write accounts off in thousands of dollars every year and pass this cost on to all the citizens of Callaway,” Pelletier wrote in the agenda request.

Also related to meters and the payment of bills is training for employees with the Springbrook utility billing system. Pelletier suggests a training session with Springbrook software representatives, costing $3,360.

Another item requests the city’s financial reports be in compliance with the Government Accounting Standards Board.

“I (have) never seen such disorganization and lack of detail when it comes to the city’s financial statements,” Pelletier wrote.

In another matter, the commission will consider a resolution to eliminate an automatic 2.5 percent increase in water and sewer rates, changing that to automatically coincide with cost increases from Bay County. The ordinance would increase the penalties for meter tampering and illegal reconnections to $100 for a first offense, $200 on second offense and $300 on the third offense.

A discussion also is scheduled about the Advanced Wastewater Treatment Group conflict assessment process. The city has two suggestions to resolve the dispute with Bay County over the Cherry Street lift station. The first is paying $308,250 for the cost of repairs for the station, which the county billed Callaway $469,010 for in May, out of the refund of $388,988 the county is currently withholding. Then Callaway would assume control of the station.

The second suggestion is that a new odor control system be installed by a third party, part of the cost of which would be paid by Callaway using the same $388,988. In both cases, Callaway staff is recommending a third-party operator for the AWT system.